The consolidated assets held by Serbian banks fell 0.9% y/y to RSD 3,933bn (EUR 34.4bn) at end-July after inching up 1.1% y/y the month before, due to falling domestic credit, central bank data showed. The ratio of bank assets to full-year GDP retreated to 104.6% at end-July from 117.2% a year earlier and 122.0% at end-2012.
Domestic credit, which makes up 56% of the banking sector assets, swung to a 1.8% y/y drop to RSD 2,216bn at end-July from a 1.0% y/y increase the month before dragged down by declining loans to companies.
Corporate lending contraction deepened to 5.9% y/y to RSD 1,062.5bn in July from 2.2% y/y the month before as budgetary funds earmarked for subsidised loans have been spent in the first quarter of the year. Loans to households edged up 0.8% y/y to RSD 673bn following a 1.9% y/y growth in June.
The annual growth of banks’ lending to the government sector slowed to 10.2% y/y to RSD 297bn in July. The trend will likely continue reflecting the increased fiscal consolidation efforts.
Don Don, a regional bakery group founded in Slovenia but active throughout the Western Balkans, will open a new production facility in the eastern Serbian town of Zajecar in spring 2018, Ales ... more
Serbia’s central bank decided to cut the monetary policy interest rate by 25bps to 3.75% at its monetary policy board meeting on September 7. The policy rate has been held constant at 4% since July ... more
An investigation is ongoing after a Bentley car hit Serbian President Aleksandar Vucic's motorcade on September 2, Deputy Prime Minister and Minister of Interior Affairs Nebojsa Stefanovic told ... more